86-ing the '87 Theory (Stock market, 1987, bonds, inflation, interest rates, yields, recession, economic growth) SmartMoney.com
For those of you freaked by the recent losses in the stock market (never mind the tremendous gains) this might be a good article to read. It gives a good historical perspective. The only thing I didn't like is that the author stated "Barring some unforeseen catastrophe like a massive terrorist attack, a stock-market crash from these levels is simply not possible."
As much as I believe in the long term growth of the stock market, it is always, I repeat always possible to have a stock-market crash. Is it likely? No, possible, sure. The stock market is risky and that is why a globally diversified portfolio that includes stocks, bonds, cash, and real estate is essential.
Scott Dauenhauer, CFP, MSFP